2 comments

  • Hard to argue against your logic, but executive pay in a down economy is more emotion than logic. And when the company fails under the leadership of a highly paid executive, emotion turns to anger. And when government funds go to bail out that failed company and even fund a bonus, anger turns to rage.

    But the CEO isn't blameless for a failure, and probably deserves to get fired for cause, which rarely happens. And, of course, the CEO in many cases gets to appoint the people who decide on his/her compensation, which seems like gaming the system. So while you're right, there is still room for just a bit of emotion.

  • Hard to argue against your logic, but executive pay in a down economy is more emotion than logic. And when the company fails under the leadership of a highly paid executive, emotion turns to anger. And when government funds go to bail out that failed company and even fund a bonus, anger turns to rage.

    But the CEO isn't blameless for a failure, and probably deserves to get fired for cause, which rarely happens. And, of course, the CEO in many cases gets to appoint the people who decide on his/her compensation, which seems like gaming the system. So while you're right, there is still room for just a bit of emotion.